Feds Release Rules to Curb Risky Mortgages

Federal regulators at the Consumer Financial Protection Bureau unveiled new rules today aimed at ensuring that mortgage borrowers can afford to repay loans they take out, reports the Memphis Daily News. The regulations impose a range of obligations and restrictions on lenders, including bans on “interest-only” and “no documentation” loans. Lenders also would be required to verify and inspect borrowers’ financial records and avoid approving debt payments totalling more than 43 percent of the borrower’s annual income.